- Barra Resources (BAR) has received all necessary approvals to mine the Main Lode South deposit at its Burbanks Gold Project
- The company can begin operations at Main Lode South once it finalises costings, timetables, and mill scheduling with FMR Investments
- Under a joint venture agreement, Barra Resources and FMR will equally share the profits from mining the deposit
- FMR has also identified the potential to expand below the initial licence area, if stage one mining proves successful
- Barra Resources closed in the grey to trade at 2.4 cents per share
Barra Resources (BAR) has received all necessary approvals to mine the Main Lode South deposit at its Burbanks Gold Project.
The company can immediately begin underground mining operations within the initial licence area once it finalises costings, timetables, and mill scheduling with FMR Investments.
Barra Resources and FMR have both entered an exploration and mining joint venture agreement, the terms of which mining Main Lode South falls under. Under this agreement, the two companies will equally share the profits from mining the deposit, once Barra repays FMR for some operating and upfront infrastructure costs.
Once mining starts at Main Lode South, FMR will carry all mining and financial risks.
Barra Resources’ Chairman, Gary Berrell, called the mining approval an important milestone for the company.
“We now have approvals to mine three deposits at Burbanks; Main Lode South, Burbanks North, and Fangjaw. We’ve now set a platform for Barra to unlock the potential at Burbanks on a zero-risk basis,” he said.
“Our next step is to finalise costings, timetables, and milling schedules before commencing mining at Main Lode, generate cash and accelerate resource growth with extensive drilling campaigns from underground and along strike,” he added.
Through its mining studies and preliminary mine planning, FMR has also identified the potential to expand below the initial licence area. If stage one mining at the Main Lode South deposit proves successful, the joint venture may consider additional mining stages.
Barra Resources closed in the grey at 2.4 cents per share.